-- Posted Friday, 25 May 2012 | | Disqus
Gold Today – New York closed higher at $1,559.50 and in London’s early morning rose to $1,563.55. The euro was slightly stronger in London at €1: $1.2582. It Fixed at $1,560.50 and in the euro at €1,240.658. Ahead of New York’s opening gold stood at $1,560.32 and in the euro, €1,240.26 while the euro was at €1: $1.2582. [To follow our weekly commentary, please subscribe to our newsletters at www.GoldForecaster.com and at www.SilverForecaster.com.].
Silver Today - Silver opened at $28.32, 50 cents higher in London. Ahead of New York’s opening at $28.26.
Gold (very short-term)
Gold will move in a narrower range, preceding a strong move, either way, today in New York.
Silver (very short-term)
Silver will move in a narrower range, preceding a strong move, either way, today in New York.
Price Drivers
Gold – It seems as though the markets are discounting a departure of Greece from the Eurozone. But the €: $ exchange rate is telling us that large amounts of capital are leaving the euro itself and not just moving to a stronger economy within the Eurozone and remaining in the euro itself. This feature of the foreign exchange markets is disturbing because it includes outside investors too and not just Eurozone residents. As of now, it is not the Eurozone debt crisis itself that is upsetting the financial world but the increasing likelihood of a ‘run’ first on Greek banks [already going on for over a year] and then on the much larger Spanish banks and then, heavens forbid, the E.U. itself. Once fear evolves into panic, such events are hard to stop and cause enormous damage. So we ask will the markets wait for the Greek elections or will they panic before then?
We are producing an article that asks, “Will Gold fall all the way down with the Euro?” With the peak of the euro at €1: $1.40 and the possibility that the euro can descend to $1.00, gold investors need to understand how gold will react in that scene.
Today, the Indian Rupee has recovered slightly to Rs.55.3675 from Rs.56.17 and it remains the principal factor in India’s gold demand at present. So, Indian gold prices today are slightly lower.
Silver – Silver bounced with some vigor overnight and jumped back into the $28 region again. It will continue to consolidate with gold on a day-to-day basis sensitive to the European bank crisis alongside gold. The fundamentals for silver remain solid.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
Global Gold Price (1 ounce) |
| Today | 1 day ago |
Franc | Sf1,490.36 | Sf1,492.10 |
US | $1,560.50 | $1,562.00 |
EU | 1,240.26 | €1,242.14 |
India | Rs.86,482.91 | Rs.87,300.18 |
-- Posted Friday, 25 May 2012 | Digg This Article
| Source: GoldSeek.com
